Federal Minister for Petroleum Musadik Malik says there will be no need to purchase spot LNG cargos
ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-Sept 4th, 2024) Federal Minister for Petroleum Musadik Malik announced that gas prices would remain stable this winter, with no anticipated increase.
Musadik Malik assured that there would be no need to purchase spot LNG cargos.
During an informal discussion with reporters in Islamabad on Wednesday, Malik revealed that four or five government teams are actively working on measures to provide relief in electricity prices.
Separate teams are addressing key issues such as electricity tariffs, power generation companies (Gencos), circular debt, and capacity payments. He expressed optimism that the forthcoming relief package will benefit the public.
Malik highlighted the challenges in gas supply during the winter due to lower electricity consumption in the colder months. He stressed the importance of boosting electricity usage in winter, noting that efforts are underway to achieve this. By reducing electricity prices while potentially increasing gas prices, winter electricity consumption could rise. He suggested that shifting heaters and stoves from gas to electricity could help avoid capacity payments during winter.
The minister also mentioned regular meetings with Saudi delegations and announced that a commercial report on the Green Refinery is expected in December. He emphasized the growing global demand for petrochemicals, stating that the Greenfield Refinery will produce an equal share of petrochemicals and petroleum.
On the Reko Diq project, Malik indicated that progress is being made towards an advanced stage, with further details to be disclosed soon. He also noted that a solar energy report will be presented to the Prime Minister shortly.
Malik refuted claims of an $18 billion penalty related to the IP gas pipeline, clarifying that no such estimate has been determined. He also stressed that addressing Balochistan’s issues requires a political solution that meets the needs of the local population, acknowledging external interference in the region.
The minister reaffirmed that gas prices would not increase this winter and expressed confidence that spot LNG cargos would not be needed.
